Indian shares closed higher on Thursday, lifted by a rise in metal stocks, and other Asian equities on improved sentiment over expectations that major central banks may get less aggressive about rate hikes.
The NSE Nifty 50 index (.NSEI) advanced 0.46% at 17,736.95 at close, and the S&P BSE Sensex (.BSESN) ended 0.36% higher to 59,756.84.
"Market is consolidating because we've had recent gains and global cues are mixed," said Ajit Mishra, vice president - research at Religare Broking.
"I won't say this is a negative market, just that it is trying to digest gains seen from 16,900 (from earlier this month) to 17,800. How the remaining earnings season pans out will determine the trend from here on," Mishra added, referring to Nifty levels. In the broader market, Asian peers rose on Thursday on hopes of less hawkish central banks. European equities fell as traders were cautious ahead of an expected 75 basis point from the European Central Bank.
In domestic trading, the Nifty's metal index (.NIFTYMET) was 2.7% up to close at a one-month high.
JSW Steel (JSTL.NS), Hindalco Industries (HALC.NS), and Tata Steel (TISC.NS) led gains on the Nifty 50 index throughout the trading session, finishing between 2% and 5% higher. "Bond yields in U.S. and dollar index coming down a bit on hopes of less aggressive rate hikes by the Fed is what is helping the metal stocks on expectations that demand for the commodities will improve," said Neeraj Dewan, director at Quantum Securities.
PNB Housing Finance (PNBH.NS) closed 5% higher after the company reported an 11.7% rise in its September-quarter consolidated net profit after tax.
